Title: Department of Energy
1Department of Energy
Competitive Sourcing/A-76 CIO Town Hall Meeting
Office of Competitive Sourcing/A-76
(ME-2.1) Denny OBrien (202-586-1690) April 7,
2004
2Discussion Topics
- DOE Program Status
- FY 02/03 Studies Status
- FAIR Act
- Codes
- OMB guidance
- FY 04 Feasibility Reviews
3Current Status Overview
- March 2002, announcement that DOE would study
1000 positions to reach then 15 goal. - FY 02 03 studies included Graphics, Civil
Rights (EEO Reviews), Financial Services,
Logistics, Human Resources Training, and
Information Technology. - The Program is overseen by the Executive Steering
Group (Deputy Secretary, Under Secretaries,
Director OMBE/CFO) - Three competitions have been completed. Civil
Rights won by contractor with 250,000 in annual
savings. Graphics resulted in MEO win with
700,000 saved annually. Recently completed
Financial Services study won by MEO and projects
savings of 31M over five years. - FY 04 Feasibility Review is underway. DOE will
formally announce its 2004 Studies by June 30,
2004.
4DOE Operational Roles
Executive Steering Group/ CSO
- Oversight
- Compliance
- Funding
- Resources
- -Study Investigation
- Direction
- Study Approval
- Study Changes
- Appointments
- Mitigation
Ofc. of Competitive Sourcing/A-76
Provides Advice, support assistance
Study Teams
Support Contractor
Monitor (contractual) day-to-day operation
Support Contractors
Contractor-PM
5FY 02/03 Functional Area Studies
6FY 02/03 Study Status
- Graphics (13 FTE) full cost comparison study
completed under old Circular - Won by DOE Most Efficient Organization (MEO) Team
estimated savings 700K per year (Study cost
195K) - Civil Rights Review (8 FTE) streamlined study
completed under revised Circular using FSS - Won by contractor estimated savings 251K per
year (Study cost 114K) - Financial Services (159 FTE, 22 Contractor FTE)
standard competition completed under revised
Circular using Cost technical tradeoff/best value
(CTTO) - Won by DOE MEO estimated savings 31M/5yr
(Study cost 2.2M)
7FY 02/03 Study Status
- Logistics - NNSA (76 FTE)
- Tentative decision April, 2004
- Human Resources - Training (145 FTE)
- Tentative decision July, 2004
- Logistics - DOE (144 FTE) - FSS Pilot
- Tentative decision August, 2004
- Information Technology (642 FTE, 1000
Contractor) - Tentative decision, 3rd quarter FY05
82003 FAIR Act InventoryReason Codes and Guidance
9FEDERAL ACTIVITIES INVENTORY REFORM ACT OF 1998
(FAIR Act)
- The FAIR Act provides a process for identifying
the functions of the Federal Government that are
not inherently governmental functions, and for
other purposes. - The FAIR Act requires each executive agency to
submit to OMB, by the end of the third quarter of
each fiscal year, a list of activities performed
by Federal Government sources that are not
inherently governmental functions. - That list is known as the FAIR Act Commercial
Activities Inventory. (Note OMB requires
agencies to also submit a list of inherently
governmental activities.) - OMB must review and consult with the agencies
regarding the content of each years inventory
upon completion of the review, OMB publishes a
notice in the Federal Register that the inventory
is available to the public and, agencies provide
copies of the inventory to Congress, while making
it available to the public.
10FAIR Act
- Upon publication of the inventory, the FAIR Act
provides an opportunity for interested parties to
challenge the agencys decisions related to the
classification of full-time equivalents (FTE) as
performing commercial activities. - After the challenges are completed, each agency
is required to review the lists and if the agency
considers contracting with a private sector
source to perform the commercial activity, the
FAIR Act requires that a competitive process be
used. - OMB implements the FAIR Act through the
provisions of OMB Circular No. A-76, Performance
of Commercial Activities.
11FAIR Act Codes/Guidance
- Reason Code Z - Inherently Governmental
- Make decisions for the government and are
directly and ultimately accountable for mission
accomplishment - FTEs necessary to exercise management authority
(direction and final decision making over
government policy, programs, property, funds and
treasury accounts or employees) - Excludes FTEs that provide first-line supervision
over employees performing functions subject to
private sector competition and performance - Detailed criteria on backup slides
12FAIR Act Codes/Guidance
- Reason Code A - The Commercial Activity is not
appropriate for private performance pursuant to a
written determination - DOE Office designate Code A with written
justification as to why not appropriate for
private sector performance - Reason Code A does not exclude FTE from potential
study and competition - OMB Guidance was to study all commercially coded
FTE - Code A is for minimum number of FTEs for
oversight, control and accountability over
Government operations
13Fair Act Codes/Guidance
- Reason Code B - the Commercial Activity (CA) is
suitable for cost comparison - Subject to A-76 study/competition
- Reason Code C - the CA is part of an ongoing cost
comparison - C1,C2 etc based on the number of studies
- Reason Code D - the CA is being performed by an
MEO based on an A-76 study within the last five
years - Reason Code E - the CA is pending an approved
restructuring decision (closure, realignment) - Reason Code F - performance by government
required by statute
14FAIR Act Process at DOE
- OMB issues annual inventory guidance (March /-)
- DOE makes changes to agency guidance and issues
to Departmental elements - Departmental elements update inventory data based
on assessment of full-time equivalent (FTE)
activities LPSOs review LPSOs and direct
reports certify to the Secretary that their
inventory data is accurate and represents their
element(s) as of the time of data submission - Data is assembled for submission to OMB Deputy
Secretary reviews on behalf of the ESG and
requests the Secretary to forward to OMB
15Whats Next?
Department of Energy
- FY 04 Feasibility Reviews
16- FEASIBILITY REVIEWS
- ARE NOT
- A-76 STUDIES/COMPETITIONS
17Why Feasibility Reviews ?
- Requirement of Revised Circular
- The Feasibility Review is a tool for
pre-announcement A-76 study planning, which
establishes logical study parameters and a solid
foundation for executing an A-76 study - The Feasibility Review presents a full set of
recommendations on the scope of the study,
mission impacts and risks, the estimated savings,
study type and proposed timeline - The result of the Feasibility Review is a
blueprint for the subsequent A-76 study and a
plan of action to execute the study - This blueprint and the plan of action will enable
DOE to maximize savings and streamline execution
of A-76 studies - This pre-announcement planning is important
because shorter A-76 study timelines are
implemented by the new Circular
18Preliminary Planning Process
Team Officials are appointed
19Feasibility ReviewCandidate Nominating Criteria
- Nominations are based on the following criteria
- Candidates coded as commercial activities
- (FAIR Act Inventory Reason Codes A-F)
- Considered mission impact
- Candidates can be competed as a business unit and
not a collection of independent positions - Candidates appear to be functions easily obtained
from the private sector - Shared responsibility throughout DOE in
Competitive Sourcing Program
202004 Feasibility Reviews
- Engineering Services DOE-Wide
- Special Studies DOE-Wide
- Management Support
- to RD DOE-Wide
- Force Management
- General Support HQs
- Albany Research Center Albany
21FY 2004 Feasibility Review (FR) Nominations (2002
FAIR Act)
- Engineering Services
- DOE-Wide Study Approx. No. of FTE 820
- FAIR Act Function Code E Environment
- FAIR Act Definition This functional group is
concerned with environmental management and
natural resources services safety and
occupational health explosives safety fire and
emergency services response to hazardous
material mishaps and pest management on
facilities. - Examples of Position Titles Environmental
Engineer, Nuclear Engineer, General Engineer,
Civil Engineer, Environmental Scientist, Physical
Scientist, Secretary, Administrative Specialists,
Office Automation Assistant, Program Analyst,
Management Analyst, Health Physicists, Program
Manager, Research Chemists, Office Manager,
Program Support Specialists, Safety and
Occupational Health Specialists
22FY 2004 Feasibility Review
- Special Studies
- DOE-Wide Study Approx. No. of FTE
170 - FAIR Act Function Code T820 and T821
- FAIR Act Definition The T820 function includes
clerical and administrative support and - T821 includes program reviews and special
studies. - Examples of Position Titles Program Manager,
Consultant, Economist, Natural Gas Analyst,
International Relations Specialist, International
Program Support Specialists, Policy Analyst,
Program Analyst, Administrative Support
Assistant, Administrative Support Specialists,
Program Analyst, Program Support Specialists,
Facility Support Specialists, Special Assistant,
Staff Assistant, Office Automation Assistant,
Visual Information Specialists
23FY 2004 Feasibility Review
- Management Support to RD
- DOE-Wide Study Approx. No. of FTE180
- FAIR Act Function Code R140
- FAIR Act Definition This function includes all
efforts not reported elsewhere that are directed
toward management and support of RD operations.
- Examples of Position Titles Energy Technology
Customer Specialists, Technical Information
Specialists, Staff Assistant, Secretary, Program
Analyst, Building Technology Information
Specialists, Economists, Executive Support
Specialists, Industrial Specialist, Program
Analyst, Management Analyst, Energy Technology
Program Specialists
24FY 2004 Feasibility Review
- Force Management and General Support
- HQ Study Approx. No. of FTE 280
- FAIR Act Function Code Y Force Management and
General Support - FAIR Act Definition No general description is
available - Examples of Position Titles Program Analyst,
Management Analyst, Physical Scientists, Health
Physicists, Visual Information Specialists,
Secretary, Lead Management Analyst, Program
Support Specialists, Administrative Support
Specialists, Legal Technician, Tech Transfer
Spec., Administrative Officer, Legislative
Research Specialists, International Policy and
Program Specialists, Public Affairs Specialists,
Foreign Affairs Specialists
25FY 04 Feasibility Review
- Albany Research Center
- Albany Research Center Approx. No. of FTE 73
- FAIR Act Function Code Multiple
- Examples of Position Titles Mechanical
Engineer, Research Chemists, Physical Science
Tech., Geologists, Engineer Tech., Electrician,
Metallurgists, Computer Engineer, Maintenance
Worker, Maintenance Mechanic, Metallurgist,
Secretary
26Feasibility Review Process
- Planning Phase
- Pre-competition Phase
- Validate nominations, market research, identify
potential costs, savings and risk from potential
competition - Management Decision
- Competition Planning Phase
- Will be carried out only if competition is
selected - Appointment of Functional Team Leads, CS
Officials, Team Members - Schedules and plans for carrying out the
competition are developed - Teams are trained in the process
- Prepare to make public announcement
27 2004 Feasibility Reviews POAM
- Planning Phase 12/18/03 - 2/27/04
- Pre-Competition Phase 3/04/04 - 6/03/04
- One-day Orientation held (3/9/04)
- Team POAMs Completed (3/12)
- Completing Data Collection
- In-progress reviews (4/5 4/6)
- Draft Report (4/16)
- Management Decision 6/10/04 - 6/30/04
- Competition Planning 6/30/04 8/31/04
- Public Announcement 8/31/04
-
28Feasibility Review Report
- Recommendations
- No Competition
- Standard Competition The government employees
compete against eligible contractors to retain
responsibility for providing the service. Source
selection may be low cost or best value. 12-18
month time limit. - Streamlined Competition The estimated cost of
the government employees' current organization or
MEO competes against the estimated cost of
private sector performance for similar services.
No 10 conversion differential is applied. Low
cost wins. 90-135 day time limit. (lt65 FTE) - Other Management Tools Reorganization, Business
Process Re-engineering, in-sourcing, etc
29For Further Information
- www.ma.mbe.doe.gov/a-76
- Hot Line 202-586-1761
- Email a76_at_hq.doe.gov
- Office of Competitive Sourcing/A-76
- Denny OBrien (202-586-1690)
- Mark Hively (202-586-5655)
- Steven Apicella (202-586-4071)
- Robin Topolski (202-586-8829)
30Backup Slides
312003 Inventory Guidance
32Code Z (Cont.)
- b. The examples listed above coincide with
functions in Appendix A of OFPP Policy Letter
92-1, reference (e). - c. Examples of positions that fall under this
criterion include the Secretary of Energy Under
Secretary, Assistant Secretary, and Deputy
Assistant Secretaries of Energy Directors of
Field Activities program and project managers
contracting officers and DOE directors over line
operations or principal staff elements. - d. This criterion excludes FTEs that provide
first-line supervision over Federal employees
performing functions that are, otherwise, subject
to private sector competition and performance.
In addition, employee utilization of Government
credit cards for the purchase of office supplies
or temporary duty travel does not meet the funds
obligational criteria specified above.
332003 Inventory Guidance
342003 Inventory Guidance
352003 Inventory Guidance
- The DOE Reason Code C sub-codes are as follows
- C1 - Information Technology positions identified
as part of the 2002-2003 Competitive Sourcing
Studies (In 2002, Reason Code D1). - C2 - Human Resources positions identified as part
of the 2002-2003 Competitive Sourcing Studies (In
2002, Reason Code D2). - C3 - Financial Services positions identified as
part of the 2002-2003 Competitive Sourcing
Studies (In 2002, Reason Code D3). - C4 - Logistics positions identified as part of
the 2002-2003 Competitive Sourcing Studies (In
2002, Reason Code D5). - C5 - Graphics positions identified as part of the
2002-2003 Competitive Sourcing Studies (In 2002,
Reason Code D6). - C6 - Civil Rights Reviews positions identified as
part of the 2002-2003 Competitive Sourcing
Studies (In 2002, Reason Code D7).
362003 Inventory Guidance